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‘Interest-only mortgage holders should seek advice’ - Ní Chuilín

Sinn Féin
Housing spokesperson Carál Ní Chuilín has urged any householders with
outstanding interest-only mortgage debt to speak to their lenders if they think
they may be in danger of losing their homes.

The North
Belfast MLA also warned that the shortage of social housing had pushed many
ordinary families into taking on mortgage debt that many are now struggling to
manage.

She
commented: “It’s important that those with interest-only mortgages ensure they
have appropriate plans in place to repay the original loan when the term of
their agreement expires.

“At the
height of the property boom many people on lower incomes were encouraged by
lenders to take out interest-only mortgages as a way of keeping their monthly
payments manageable.

“But this
has left them vulnerable to losing their homes if they can’t pay back the
original loan when the agreement ends. Many families could be facing
foreclosure and they should be contacting their lenders now and try to change
the terms of their mortgage agreement.

“It seems
a long time ahead but even if the terms don’t end until the 2030s, the Financial
Conduct Authority advises that it’s better to try and resolve this now.”